We are flipping in the south jersey area and are using a 203K loan. We had a list of contractors that use 203K loans from the mortgage company but some of them have been unreliable. I wanted to reach out and see if anybody has any recommendations for reliable and moderately priced contractors in the south jersey area. Thank you!
Hey @Alyssa Coffey
PM me and I'll send you the detail of contractor I evaluated some time ago when I solicited bids from contractors.
He told me he is an approved 203k contractor and he was pretty straight forward.
@Alyssa Coffey if you have a contractor you like then you may be able to get that person added to the "approved" list. Each lender has its own list. We had a contractor added once and it wasn't that much paperwork for him - just a couple of pages - and then he not only got our work but was on the list for future borrowers / customers too.
@Teri S. I wish I had one that I liked. I currently havn't found one that is reliable enough to give to the mortgage company. I'm absolutely open to finding a contractor who is willing to do a 203K and then add them to their list but have yet to find anybody in my area unfortunately.
You can use any contractor, they just need to go through an approval process with the lender. Usually that entails obtaining a copy of their business license, insurance, and some other operating agreement type stuff.
Also, the contractor you select needs to be OK with waiting until full completion and inspection by the lender before any payment is authorized and released. This often limits the contractor pool since they usually collect some upfront and want to be paid immediately after completion. The lender was fairly quick to inspect and release funds, but it still took several days. Just be aware, and make sure the contractor knows and is ok with it too.
Hi! We closed on our 203k in Oct. of 2016 in northern NJ, and finished up with the contractor about a year ago this month. You do NOT need a 203k "approved" GC. All that means is he/she went through the requirements to get that after their name. I second @Cara Lonsdale - they simply have to prove license, insurance, and be game for a BOATLOAD of paperwork on time limits.
Regarding their payment - at the time we did our 203k, they could either wait until full completion/inspection, or they could file another form and write a letter stating they don't have the $$ to put up front, and therefore get 50% of costs needed from the bank to start the required work. Our guy did that, not a huge deal. He got his balance from the bank at the end of it all.
I definitely recommend finding a lender who knows this sort of info off the top of their heads. 203k is no joke when it comes to paperwork!! Also - contractors who have admin staff might be a good idea-- our guy did not have this, but it would have been helpful.
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